gladstone harbor queensland train load-out at blackwater mir hay point queensland for goonyella and peak 62 cubic yard draglim md unit at upper left navajo coal reserves of 1.1 billion tons is now committed to electric power generation and the remainder is available for future development the market for coking coal has been strengthening and prospects are that over the long term coking coal will continue in short supply responsive to this grow ing demand shipments of washed coking coal from utah development company's wholly owned blackwater mine in queensland australia rose 80 to 3 million long tons in 1970 as compared with 1.6 millions tons in 1969 of the 1970 total 2.5 million tons represented sales under long term contracts and the balance was sold on a spot basis profitability of the blackwater operation was sharply higher in 1970 with the promising outlook for coking coal and having adequate reserves available a program to expand production of coking coal to 13 million tons per year by 1973 has been author ized and is already under way this increased output capacity is being accom plished in three steps " capacity of the blackwater mine will be expanded from its present rated output of 3 million tons per year to a new level of 4 million tons subject to the conclusion of agreements being negotiated with government agencies for additional railing facilities and port installations the increased output is expected to become operational by the end of 1972 the capital investment cost of this expansion is estimated at 19.1 million • based on sales agreements for de liveries of 50.5 million tons of cokin coal to japanese buyers over a period of 13 years a new mine known as goon yella is being developed in central queensland about 150 miles north of the blackwater mine owned 85 by utah development company and 15 by mitsubishi development pty ltd the goonyella mine is scheduled to start up in mid-1971 and to produce 2.5 million tons in its first 12 months of operation and 4 million tons annually thereafter • an additional 34.5 million tons of coking coal has been sold under con tracts which became effective in 1970 and call for shipments from the queens land reserves over a period of 12 years beginning in mid-1972 in order to meet this delivery schedule a second new mine to be known as peak downs is being developed in an area lying between the blackwater and goonyella sites and about 35 miles south of goonyella the peak downs mine also owned 85 by utah development company and 15 by mitsubishi development pty ltd is expected to begin operations in mid-1972 it is sized to produce 2 million tons of coking coal in its first year of operations and 5 million tons annually thereafter which will include sufficient capacity to permit spot sales as well as to fulfil the long term contract commitments mining installations and equipment coal preparation plants and a townsite and deepwater port together with railroad improvements and new railroad construc tion by the queensland government to be financed by security advances from utah development company are re quired to bring each of these two mines into operation and to ship its output of coking coal to port and load it for export the total capital investment required to bring both goonyella and peak downs into production and to their full rated output capacities including the cost of the townsite and port and other facilities 9